What are the benefits of a current account over a savings account for a small business? What are the formalities required in opening the same?
Padmanabh Jha, Noida
If you are running a business and need to make and receive several payments, a current account helps. You do not earn any interest on the balance, but you will be able to transfer funds at lower costs, use at-par cheques, and negotiate an overdraft limit to tide over temporary mismatches in receipts and payment. The current account opening procedures are similar to that of a savings account: proof of residence of the firm or proprietor, PAN, and photograph, partnership deed in case of partnership firm, certificate of incorporation, memorandum of association and articles of association in case of companies.
